Which type of project do financial managers typically use the highest cost of capital when evaluating?

Question

Quizplus · Accepted Answer

Financial managers typically use the highest cost of capital when evaluating new product projects, as these types of projects often come with a higher level of risk compared to other types of projects such as market expansion or efficiency projects. The high cost of capital helps to account for this additional risk and ensures that the project is generating enough return to justify its investment.

Which Type of Project Do Financial Managers Typically Use the Highest